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90_SB0569enr
105 ILCS 5/2-3.130 new
Amends the School Code. Requires the State Board of
Education to provide, or arrange to have provided, educators
liability coverage in specified amounts for each certificated
employee of any school district or other public elementary or
secondary educational entity in Illinois. Effective
immediately.
SRS90S0007KSsa
SB569 Enrolled SRS90S0007KSsa
1 AN ACT to amend the School Code by changing Section 19-1.
2 Be it enacted by the People of the State of Illinois,
3 represented in the General Assembly:
4 Section 5. The School Code is amended by changing
5 Section 19-1 as follows:
6 (105 ILCS 5/19-1) (from Ch. 122, par. 19-1)
7 Sec. 19-1. Debt limitations of school districts.
8 (a) School districts shall not be subject to the
9 provisions limiting their indebtedness prescribed in "An Act
10 to limit the indebtedness of counties having a population of
11 less than 500,000 and townships, school districts and other
12 municipal corporations having a population of less than
13 300,000", approved February 15, 1928, as amended.
14 No school districts maintaining grades K through 8 or 9
15 through 12 shall become indebted in any manner or for any
16 purpose to an amount, including existing indebtedness, in the
17 aggregate exceeding 6.9% on the value of the taxable property
18 therein to be ascertained by the last assessment for State
19 and county taxes or, until January 1, 1983, if greater, the
20 sum that is produced by multiplying the school district's
21 1978 equalized assessed valuation by the debt limitation
22 percentage in effect on January 1, 1979, previous to the
23 incurring of such indebtedness.
24 No school districts maintaining grades K through 12 shall
25 become indebted in any manner or for any purpose to an
26 amount, including existing indebtedness, in the aggregate
27 exceeding 13.8% on the value of the taxable property therein
28 to be ascertained by the last assessment for State and county
29 taxes or, until January 1, 1983, if greater, the sum that is
30 produced by multiplying the school district's 1978 equalized
31 assessed valuation by the debt limitation percentage in
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1 effect on January 1, 1979, previous to the incurring of such
2 indebtedness.
3 Notwithstanding the provisions of any other law to the
4 contrary, in any case in which the voters of a school
5 district have approved a proposition for the issuance of
6 bonds of such school district at an election held prior to
7 January 1, 1979, and all of the bonds approved at such
8 election have not been issued, the debt limitation applicable
9 to such school district during the calendar year 1979 shall
10 be computed by multiplying the value of taxable property
11 therein, including personal property, as ascertained by the
12 last assessment for State and county taxes, previous to the
13 incurring of such indebtedness, by the percentage limitation
14 applicable to such school district under the provisions of
15 this subsection (a).
16 (b) Notwithstanding the debt limitation prescribed in
17 subsection (a) of this Section, additional indebtedness may
18 be incurred in an amount not to exceed the estimated cost of
19 acquiring or improving school sites or constructing and
20 equipping additional building facilities under the following
21 conditions:
22 (1) Whenever the enrollment of students for the
23 next school year is estimated by the board of education
24 to increase over the actual present enrollment by not
25 less than 35% or by not less than 200 students or the
26 actual present enrollment of students has increased over
27 the previous school year by not less than 35% or by not
28 less than 200 students and the board of education
29 determines that additional school sites or building
30 facilities are required as a result of such increase in
31 enrollment; and
32 (2) When the Regional Superintendent of Schools
33 having jurisdiction over the school district and the
34 State Superintendent of Education concur in such
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1 enrollment projection or increase and approve the need
2 for such additional school sites or building facilities
3 and the estimated cost thereof; and
4 (3) When the voters in the school district approve
5 a proposition for the issuance of bonds for the purpose
6 of acquiring or improving such needed school sites or
7 constructing and equipping such needed additional
8 building facilities at an election called and held for
9 that purpose. Notice of such an election shall state that
10 the amount of indebtedness proposed to be incurred would
11 exceed the debt limitation otherwise applicable to the
12 school district. The ballot for such proposition shall
13 state what percentage of the equalized assessed valuation
14 will be outstanding in bonds if the proposed issuance of
15 bonds is approved by the voters; or
16 (4) Notwithstanding the provisions of paragraphs
17 (1) through (3) of this subsection (b), if the school
18 board determines that additional facilities are needed to
19 provide a quality educational program and not less than
20 2/3 of those voting in an election called by the school
21 board on the question approve the issuance of bonds for
22 the construction of such facilities, the school district
23 may issue bonds for this purpose.
24 In no event shall the indebtedness incurred pursuant to
25 this subsection (b) and the existing indebtedness of the
26 school district exceed 15% of the value of the taxable
27 property therein to be ascertained by the last assessment for
28 State and county taxes, previous to the incurring of such
29 indebtedness or, until January 1, 1983, if greater, the sum
30 that is produced by multiplying the school district's 1978
31 equalized assessed valuation by the debt limitation
32 percentage in effect on January 1, 1979.
33 The indebtedness provided for by this subsection (b)
34 shall be in addition to and in excess of any other debt
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1 limitation.
2 (c) Notwithstanding the debt limitation prescribed in
3 subsection (a) of this Section, in any case in which a public
4 question for the issuance of bonds of a proposed school
5 district maintaining grades kindergarten through 12 received
6 at least 60% of the valid ballots cast on the question at an
7 election held on or prior to November 8, 1994, and in which
8 the bonds approved at such election have not been issued, the
9 school district pursuant to the requirements of Section
10 11A-10 may issue the total amount of bonds approved at such
11 election for the purpose stated in the question.
12 (d) Notwithstanding the debt limitation prescribed in
13 subsection (a) of this Section, a school district that meets
14 all the criteria set forth in paragraphs (1) and (2) of this
15 subsection (d) may incur an additional indebtedness in an
16 amount not to exceed $4,500,000, even though the amount of
17 the additional indebtedness authorized by this subsection
18 (d), when incurred and added to the aggregate amount of
19 indebtedness of the district existing immediately prior to
20 the district incurring the additional indebtedness authorized
21 by this subsection (d), causes the aggregate indebtedness of
22 the district to exceed the debt limitation otherwise
23 applicable to that district under subsection (a):
24 (1) The additional indebtedness authorized by this
25 subsection (d) is incurred by the school district through
26 the issuance of bonds under and in accordance with
27 Section 17-2.11a for the purpose of replacing a school
28 building which, because of mine subsidence damage, has
29 been closed as provided in paragraph (2) of this
30 subsection (d) or through the issuance of bonds under and
31 in accordance with Section 19-3 for the purpose of
32 increasing the size of, or providing for additional
33 functions in, such replacement school buildings, or both
34 such purposes.
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1 (2) The bonds issued by the school district as
2 provided in paragraph (1) above are issued for the
3 purposes of construction by the school district of a new
4 school building pursuant to Section 17-2.11, to replace
5 an existing school building that, because of mine
6 subsidence damage, is closed as of the end of the 1992-93
7 school year pursuant to action of the regional
8 superintendent of schools of the educational service
9 region in which the district is located under Section
10 3-14.22 or are issued for the purpose of increasing the
11 size of, or providing for additional functions in, the
12 new school building being constructed to replace a school
13 building closed as the result of mine subsidence damage,
14 or both such purposes.
15 (e) Notwithstanding the debt limitation prescribed in
16 subsection (a) of this Section, a school district that meets
17 all the criteria set forth in paragraphs (1) through (5) of
18 this subsection (e) may, without referendum, incur an
19 additional indebtedness in an amount not to exceed the lesser
20 of $5,000,000 or 1.5% of the value of the taxable property
21 within the district even though the amount of the additional
22 indebtedness authorized by this subsection (e), when incurred
23 and added to the aggregate amount of indebtedness of the
24 district existing immediately prior to the district incurring
25 that additional indebtedness, causes the aggregate
26 indebtedness of the district to exceed or increases the
27 amount by which the aggregate indebtedness of the district
28 already exceeds the debt limitation otherwise applicable to
29 that district under subsection (a):
30 (1) The State Board of Education certifies the
31 school district under Section 19-1.5 as a financially
32 distressed district.
33 (2) The additional indebtedness authorized by this
34 subsection (e) is incurred by the financially distressed
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1 district during the school year or school years in which
2 the certification of the district as a financially
3 distressed district continues in effect through the
4 issuance of bonds for the lawful school purposes of the
5 district, pursuant to resolution of the school board and
6 without referendum, as provided in paragraph (5) of this
7 subsection.
8 (3) The aggregate amount of bonds issued by the
9 financially distressed district during a fiscal year in
10 which it is authorized to issue bonds under this
11 subsection does not exceed the amount by which the
12 aggregate expenditures of the district for operational
13 purposes during the immediately preceding fiscal year
14 exceeds the amount appropriated for the operational
15 purposes of the district in the annual school budget
16 adopted by the school board of the district for the
17 fiscal year in which the bonds are issued.
18 (4) Throughout each fiscal year in which
19 certification of the district as a financially distressed
20 district continues in effect, the district maintains in
21 effect a gross salary expense and gross wage expense
22 freeze policy under which the district expenditures for
23 total employee salaries and wages do not exceed such
24 expenditures for the immediately preceding fiscal year.
25 Nothing in this paragraph, however, shall be deemed to
26 impair or to require impairment of the contractual
27 obligations, including collective bargaining agreements,
28 of the district or to impair or require the impairment of
29 the vested rights of any employee of the district under
30 the terms of any contract or agreement in effect on the
31 effective date of this amendatory Act of 1994.
32 (5) Bonds issued by the financially distressed
33 district under this subsection shall bear interest at a
34 rate not to exceed the maximum rate authorized by law at
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1 the time of the making of the contract, shall mature
2 within 40 years from their date of issue, and shall be
3 signed by the president of the school board and treasurer
4 of the school district. In order to issue bonds under
5 this subsection, the school board shall adopt a
6 resolution fixing the amount of the bonds, the date of
7 the bonds, the maturities of the bonds, the rates of
8 interest of the bonds, and their place of payment and
9 denomination, and shall provide for the levy and
10 collection of a direct annual tax upon all the taxable
11 property in the district sufficient to pay the principal
12 and interest on the bonds to maturity. Upon the filing
13 in the office of the county clerk of the county in which
14 the financially distressed district is located of a
15 certified copy of the resolution, it is the duty of the
16 county clerk to extend the tax therefor in addition to
17 and in excess of all other taxes at any time authorized
18 to be levied by the district. If bond proceeds from the
19 sale of bonds include a premium or if the proceeds of the
20 bonds are invested as authorized by law, the school board
21 shall determine by resolution whether the interest earned
22 on the investment of bond proceeds or the premium
23 realized on the sale of the bonds is to be used for any
24 of the lawful school purposes for which the bonds were
25 issued or for the payment of the principal indebtedness
26 and interest on the bonds. The proceeds of the bond sale
27 shall be deposited in the educational purposes fund of
28 the district and shall be used to pay operational
29 expenses of the district. This subsection is cumulative
30 and constitutes complete authority for the issuance of
31 bonds as provided in this subsection, notwithstanding any
32 other law to the contrary.
33 (f) Notwithstanding the provisions of subsection (a) of
34 this Section or of any other law, bonds in not to exceed the
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1 aggregate amount of $5,500,000 and issued by a school
2 district meeting the following criteria shall not be
3 considered indebtedness for purposes of any statutory
4 limitation and may be issued in an amount or amounts,
5 including existing indebtedness, in excess of any heretofore
6 or hereafter imposed statutory limitation as to indebtedness:
7 (1) At the time of the sale of such bonds, the
8 board of education of the district shall have determined
9 by resolution that the enrollment of students in the
10 district is projected to increase by not less than 7%
11 during each of the next succeeding 2 school years.
12 (2) The board of education shall also determine by
13 resolution that the improvements to be financed with the
14 proceeds of the bonds are needed because of the projected
15 enrollment increases.
16 (3) The board of education shall also determine by
17 resolution that the projected increases in enrollment are
18 the result of improvements made or expected to be made to
19 passenger rail facilities located in the school district.
20 (g) Notwithstanding the provisions of subsection (a) of
21 this Section or any other law, bonds in not to exceed an
22 aggregate amount of 25% of the equalized assessed value of
23 the taxable property of a school district and issued by a
24 school district meeting the criteria in paragraphs (i)
25 through (iv) of this subsection shall not be considered
26 indebtedness for purposes of any statutory limitation and may
27 be issued pursuant to resolution of the school board in an
28 amount or amounts, including existing indebtedness, in excess
29 of any statutory limitation of indebtedness heretofore or
30 hereafter imposed:
31 (i) The bonds are issued for the purpose of
32 constructing a new high school building to replace two
33 adjacent existing buildings which together house a single
34 high school, each of which is more than 65 years old, and
SB569 Enrolled -9- SRS90S0007KSsa
1 which together are located on more than 10 acres and less
2 than 11 acres of property.
3 (ii) At the time the resolution authorizing the
4 issuance of the bonds is adopted, the cost of
5 constructing a new school building to replace the
6 existing school building is less than 60% of the cost of
7 repairing the existing school building.
8 (iii) The sale of the bonds occurs before July 1,
9 1997.
10 (iv) The school district issuing the bonds is a
11 unit school district located in a county of less than
12 70,000 and more than 50,000 inhabitants, which has an
13 average daily attendance of less than 1,500 and an
14 equalized assessed valuation of less than $29,000,000.
15 (h) Notwithstanding any other provisions of this Section
16 or the provisions of any other law, until January 1, 1998, a
17 community unit school district maintaining grades K through
18 12 may issue bonds up to an amount, including existing
19 indebtedness, not exceeding 27.6% of the equalized assessed
20 value of the taxable property in the district, if all of the
21 following conditions are met:
22 (i) The school district has an equalized assessed
23 valuation for calendar year 1995 of less than
24 $24,000,000;
25 (ii) The bonds are issued for the capital
26 improvement, renovation, rehabilitation, or replacement
27 of existing school buildings of the district, all of
28 which buildings were originally constructed not less than
29 40 years ago;
30 (iii) The voters of the district approve a
31 proposition for the issuance of the bonds at a referendum
32 held after March 19, 1996; and
33 (iv) The bonds are issued pursuant to Sections 19-2
34 through 19-7 of this Code.
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1 (i) Notwithstanding any other provisions of this Section
2 or the provisions of any other law, until January 1, 1998, a
3 community unit school district maintaining grades K through
4 12 may issue bonds up to an amount, including existing
5 indebtedness, not exceeding 27% of the equalized assessed
6 value of the taxable property in the district, if all of the
7 following conditions are met:
8 (i) The school district has an equalized assessed
9 valuation for calendar year 1995 of less than
10 $44,600,000;
11 (ii) The bonds are issued for the capital
12 improvement, renovation, rehabilitation, or replacement
13 of existing school buildings of the district, all of
14 which existing buildings were originally constructed not
15 less than 80 years ago;
16 (iii) The voters of the district approve a
17 proposition for the issuance of the bonds at a referendum
18 held after December 31, 1996; and
19 (iv) The bonds are issued pursuant to Sections 19-2
20 through 19-7 of this Code.
21 (j) Notwithstanding any other provisions of this Section
22 or the provisions of any other law, until January 1, 1999, a
23 community unit school district maintaining grades K through
24 12 located in a county of more than 240,000 but less than
25 260,000 inhabitants may issue bonds up to an amount,
26 including existing indebtedness, not exceeding 27% of the
27 equalized assessed value of the taxable property in the
28 district if all of the following conditions are met:
29 (i) The school district has an equalized assessed
30 valuation for calendar year 1995 of less than
31 $140,000,000 $137,400,000 and a best 3 months average
32 daily attendance for the 1995-96 1994-95 school year of
33 at least 2,800, but less than 3,000;
34 (ii) The bonds are issued to purchase a site and
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1 build and equip a new high school, and the school
2 district's for the capital improvement, renovation,
3 rehabilitation, or replacement of existing school
4 buildings of the district, all of which existing high
5 school was buildings were originally constructed not less
6 than 35 80 years prior to the sale of the bonds ago, or
7 for the construction of new school facilities;
8 (iii) At the time of the sale of the bonds, the
9 board of education determines by resolution that a new
10 high school is needed because of projected enrollment
11 increases;
12 (iv iii) At least 60% of those voting in an
13 election held after December 31, 1996 The voters of the
14 district approve a proposition for the issuance of the
15 bonds at a referendum held after December 31, 1996; and
16 (v iv) The bonds are issued pursuant to Sections
17 19-2 through 19-7 of this Code.
18 (Source: P.A. 88-376; 88-641, eff. 9-9-94; 88-686, eff.
19 1-24-95; 89-47, eff. 7-1-95; 89-661, eff. 1-1-97; 89-698,
20 eff. 1-14-97.)
21 Section 99. Effective date. This Act takes effect upon
22 becoming law.